To trade or not to trade, when the Fed sends you inside info

 

What would you do if you got your hands on a closely watched report that often moves stocks, bonds and currency markets, and it was sent to you by the Federal Reserve the day before its official release?

Would you trade on the information it contained? If you did, would that be insider trading?

Some bank employees were faced with that dilemma on Tuesday when a member of the Fed's congressional liaison office accidentally sent emails to more than 100 people with the normally closely guarded minutes of the Fed's March 19-20 policy meeting, 24 hours before the official release time.

There was no immediate sign that anyone traded improperly, and markets did not move much on the minutes, either on Tuesday or after the Fed released them officially on Wednesday.

While most of the recipients were congressional staff and trade groups, some worked at banks, raising questions about whether their employers could have gotten an unfair advantage.

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"There was no immediate sign that anyone traded improperly" -there never a sign of that :)

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